Nov 14, 2024
MEMPHIS, Tenn. --A manufacturing company has purchased a 787,000-square-foot manufacturing facility in Southeast Memphis and says it will create 828 skilled jobs over the next five years. AAON is moving into the old American Snuff Company facility in the 5100 block of Tradeport Drive, where it will produce various types of thermal management equipment for data centers under the BASX brand, including air-cooled systems, computer room air handlers (CRAHs), direct evaporative coolers, and liquid cooling distribution units (CDUs). The old American Snuff Co. facility is just off East Holmes Road. WREG photo The plant, just off East Holmes Road, is expected to have limited production in early 2025 but be fully operational in approximately 12 months.     “The expansion of our production capacity through the purchase of this new facility marks a new chapter for AAON,” said Gary Fields, AAON CEO, “Not only will this allow us to continue to capitalize on the rapidly growing data center market, it demonstrates the commitment we have to our data center customers and the confidence we have in the vertical strategy of this market. At the same time, we are thrilled to bring new jobs and investment to the Memphis community and look forward to seeing the positive impact it will have on both our company and the local economy.” AAON requested approval from EDGE for a 15-year tax reduction. EDGE says the project is expected to generate more than $29 million in tax revenue during the 15-year term. Based in Tulsa, Oklahoma, AAON, Inc. employs nearly 4,000 worldwide and made more than $1 billion in sales in 2023. HVAC company may open new Memphis manufacturing plant According to the Economic Development Growth Engine for Memphis and Shelby County or EDGE, AAON engineers, manufactures and sells premium HVAC equipment consisting primarily of semi-custom and custom rooftop units, data center cooling solutions, cleanroom systems, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils, and controls. The company will be investing $238 million in Shelby County. "Building a robust recruitment pipeline requires strong relationships with both industry leaders and our economic development partners,” said City of Memphis Mayor Paul Young, “Welcoming AAON to Memphis represents a significant step toward making our market even more competitive on a national level. With AAON's commitment, we are enhancing our local economy and elevating Memphis as a destination for high-quality jobs and sustainable industry growth.” FedEx confirms ‘small number’ of layoffs Old American Snuff Co. building in 5100 block of Tradeport Drive in SE MemphisOld American Snuff Co. building in 5100 block of Tradeport Drive in SE Memphis Tennessee Governor Bill Lee is also applauding AAON's expansion to Tennessee. “I welcome AAON to Memphis, Tennessee, and thank this company for its commitment to creating 828 new jobs for the families across Shelby County. The state with the workforce wins the future, and we are committed to ensuring that AAON has the right support and surplus of skilled workers to fill these new positions.” – Gov. Bill Lee EDGE said the average wage at the Memphis facility will be $57,232.
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